Progress Energy Resources Corp.   Winter 2010/2011 Asset Sale	Bids Due: Jan. 17, 2011	PDF IM 45 Pgs, 21.8 MB   Confidentiality Agreement	Primary Contact: Tom Caldwell 403-299-8453
Introduction Letter | Foreward & Disclaimer | Asset Sale Overview Fort St. John North: Overview | Beaverdam | Currant | Minor Properties Fort St. John South: Overview | Two Rivers | Stoddart | West Eagle | Flatrock | Teal Ojay: Overview | Area Activity | Nikanassin Development Potential | Cadotte/Falher Development Potential Copton: Overview | Geology & Area Activity | Cardium Development Potential | Cadotte Development Potential Two Creek: Overview | Jurassic 'A' and 'B' Pools | Jurassic 'A' Pool - ASP Upside Potential | Gething

 

OJAY - AREA ACTIVITY

 

 

GEOLOGY AND AREA ACTIVITY OVERVIEW

 

Company lands in the Ojay area are located along the deformation front, along the front edge of the foothills. Structural elements are prevalent, including concentrated thrust faulting and folding, enhancing the porosity and permeability in reservoirs that would otherwise have low effective porosity and permeability due to cementation. The primary targets in the Ojay area are the Nikanassin, Cadotte, and Falher. Additional potential exists in the Notikewin and Cadomin.

 

The Nikanassin play has experienced significant activity in recent years, as area players apply new fracture technologies to increase the reservoir productivity and economics. Structural elements and their influence on the reservoir quality have become better understood, with well trajectories being modified to maximize the potential of these reservoirs though targeting thrust faults and folds. The structural Nikanassin play trends in a southeast to northwest direction, extending from Narraway, up through Chinook Ridge, Ojay, Hiding Creek, North Grizzly, and into Jackpine/Noel.

 

Historical production is present offsetting Company lands in North Grizzly, where there are three currently producing Nikanassin wells that were brought on production in the 1970’s. These include the b-062-G and c-074-G wells, which have produced 8.9 Bcf and 4.4 Bcf respectively. The third well is the a-051-G which has produced almost 22 Bcf to date, and is still producing over 1.1 MMcf/d. These wells illustrate the potential size and quality of the Nikanassin gas reservoir in this area: they were drilled and completed using much older technology, and yet achieved phenomenal success. There is also one horizontal well licensed by Shell at d-042-K targeting the Nikanassin, northwest of these historical producers, as well as producers present immediately adjacent to Company lands. On trend, and southeast of Company lands, activity has been steady, with Shell, Talisman, Devon and Canadian Forest leading the way in wells drilled. Significant results have been achieved by these operators where initial rates have reached 10-30 MMcf/d. Overall, the Company’s lands at Ojay show great potential based on the surrounding activity and results.

 

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